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DECISION No. 272/2003/QD-TTg OF DECEMBER 31, 2003 RATIFYING THE STRATEGY FOR VIETNAM'S SCIENTIFIC AND TECHNOLOGICAL DEVELOPMENT TILL THE YEAR 2010

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 22, 2000 Law on Science and Technology;

At the proposal of the Minister of Science and Technology,

DECIDES:

Article 1.- To ratify the "strategy for Vietnam's scientific and technological development till the year 2010" promulgated together with this Decision.

Article 2.- Assignment of responsibilities to implement the strategy

1. The Ministry of Science and Technology shall assume the prime responsibility and coordinate with the Ministry of Planning and Investment, the Ministry of Finance and the concerned ministries, branches and People's Committees of the provinces and centrally-run cities in organizing the implementation of the strategy for Vietnam's scientific and technological development till the year 2010; working out and organizing the implementation of five-year and annual scientific and technological plans in line with the scientific and technological development strategy and the socio-economic development plans; guiding, inspecting, supervising and summing up the implementation thereof and periodically report thereon to the Prime Minister; organizing the preliminary review of the implementation of this strategy in early 2006 and the final review thereof in early 2011;

2. The Ministry of Education and Training shall assume the prime responsibility and coordinate with the Ministry of Science and Technology in working out and implementing plans on training of scientific and technological human resource, suitable to the priority and key scientific and technological fields specified in the strategy for Vietnam's scientific and technological development till the year 2010; formulating and organizing the implementation of the mechanism for associating science and technology with education and training, as well as the mechanism for coordination between universities and research institutes in the professional teaching and scientific research;

3. The Ministry of Planning and Investment shall direct the ministries, the ministerial-level agencies, the Government-attached agencies and localities to incorporate the plans on scientific and technological development and training of the scientific and technological human resource in their periodical plans; assume the prime responsibility and coordinate with the Ministry of Finance and the Ministry of Science and Technology in mobilizing financial aids at home and abroad for the scientific and technological development, ensuring the funding sources for investment in infrastructure construction, modern facilities and equipment, training of human resource for the priority and key scientific and technological fields;

4. The Ministry of Home Affairs shall assume the prime responsibility and coordinate with the Ministry of Science and Technology, the concerned ministries and agencies in effecting the administrative reform in the scientific and technological management work; formulating policies and regimes applicable to scientific and technological personnel; formulating the autonomy and self-responsibility mechanism for applicable to scientific and technological organizations;

5. The Ministry of Finance shall assume the prime responsibility and coordinate with the Ministry of Planning and Investment and the Ministry of Science and Technology in determining the annual budget expenditure for science and technology, ensuring the implementation of the strategy for the scientific and technological development till 2010; improving the financial regimes and policies and the financial management regime applicable to the scientific and technological sector for efficient use of financial sources invested in science and technology;

6. The ministries, the ministerial-level agencies and the Government-attached agencies shall, within the ambit of their respective functions and tasks, direct the implementation of the strategy for scientific and technological development till the year 2010 according to their competence; coordinate with the Ministry of Science and Technology and other ministries and agencies in organizing the performance of the scientific and technological development tasks throughout the country;

7. The People's Committees of the provinces and centrally-run cities shall be responsible for scientific and technological development in their respective localities according to their competence; work out and direct the implementation of five-year and annual scientific and technological plans in line with the Strategy for scientific and technological development till the year 2010 and the local socio-economic development plans in the same period.

Article 3.- This Decision takes effect 15 days after its publication in the Official Gazette.

Article 4.- The ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies, the presidents of the People's Committees of the provinces and centrally-run cities shall have to implement this Decision.

Prime Minister

PHAN VAN KHAI

STRATEGY FOR VIETNAM’S SCIENTIFIC AND TECHNOLOGICAL DEVELOPMENT TILL THE YEAR 2010

(Promulgated together with the Prime Minister's Decision No. 272/2003/QD-TTg of December 31, 2003)

Our Party and State have affirmed that scientific and technological development, together with education and training development, constitutes a primary national policy, a cornerstone and driving force for stepping up the national industrialization and modernization. Though our country is still poor, over the recent period, with the due attention paid by the Party and the State, especially the endeavors and efforts of the contingent of scientific and technological cadres throughout the country, our scientific and technological potentials have been enhanced and science and technology have made marked contributions to the cause of socio-economic development and maintenance of national defense and security.

Nevertheless, our country's present scientific and technological level is generally still low as compared with the countries in the world and the region, the capability to create new technologies is still limited and unable to meet the requirements of the cause of national industrialization and industrialization. Our country's science and technology are in danger of lagging further behind in face of the trend of vigorous development of science and technology and knowledge-based economy in the world.

The biggest challenge to our country's socio-economic development at present is the poor growth quality, low efficiency and competitiveness of the economy, which lead to the danger of a prolonged situation of lagging behind the regional countries and make it difficult to attain the industrialization and industrialization objectives. This situation requires an important contribution by science and technology to the promotion of the national socio-economic development.

The idea of the strategy for our country's scientific and technological development till 2010 is to concentrate on building up our country's science and technology along the direction of modernization and integration, striving to attain the advanced intermediate level of the region by 2010, making science and technology really become a cornerstone and driving force for stepping up the national industrialization and modernization.

The strategy for scientific and technological development has the following principal tasks: To build our country's scientific and technological system into one with close correlation, strong motive force and full capability, which is managed under appropriate mechanism; to step up the international integration in science and technology; to make decisive contribution to raising the growth quality and competitiveness of the economy; and to effectively serve the objectives of the 2001-2010 socio-economic development strategy adopted by the IXth National Party Congress.

1. Actual state of Vietnam's science and technology

1.1. Achievements

a/ Scientific and technological potentials have been enhanced and developed

Thanks to the attention and investment by the Party and State, over the past decades, we have trained over 1.8 million cadres of university or college degree or higher level, of whom 30,000 are of postgraduate degree (over 14,000 doctors and 16,000 masters) and around 2 million technical workers, of whom around 34,000 have been working in the scientific and technological domain in the State sector. They have constituted an important human resource for our country's scientific and technological activities. Realities have shown that this contingent is capable of quickly absorbing and mastering modern knowledge and technologies in some branches and fields.

Recently, a network of scientific and technological organizations has been built with over 1,100 research and development organizations of all economic sectors, of which nearly 500 organizations are non-State ones; 197 universities and colleges, of which 30 are people-founded. Technical infrastructures of institutes, research centers, laboratories, scientific and technological information centers, libraries have been consolidated and upgraded. Some forms of good combination between scientific research and technological development and production and business have appeared.

Though the State budget is still modest, the ratio of budget allocations for science and technology, thanks to great efforts of the State, has reached 2% since 2000, marking an important landmark in the course of implementing the Party's and the State's investment policies for scientific and technological development.

b/ Science and technology have positively contributed to socio-economic development

Social sciences and humanities have made important contributions to comprehending and affirming the scientific and practical values of Marxism-Leninism and Ho Chi Minh Thoughts, and the path to socialism in Vietnam; provided scientific grounds in service of the formulation of lines, undertakings and policies of the Party and the State; contributed to the success of the cause of renewal in general and the renewal of economic thinking in particular.

The results of basic surveys and researches into natural conditions and resources have served the formation of scientific grounds for socio-economic development plans of the country.

Science and technology have made important contributions to the absorption, master, adaptation and efficient exploitation of imported technologies. As a result, the technological level in some production and service branches has been markedly raised, with many more highly competitive products turned out. Particularly in agriculture, science and technology have created many plant varieties and animal breeds of high quality and yield, thus contributing to the economic restructuring of rural areas and turning ours from a food-importing country into one of the biggest rice and coffee exporters in the world.

The key research programs on information technology, biological technology, materials technology, automation, and mechine-tool manufacturing technology have contributed to enhancing the internal strength in a number of advanced technologies, raising productivity, quality and efficiency of many economic sectors.

Over the past years, science and technology have contributed to training and raising the qualifications of the human resource, caring for people's health, protecting the environment, preserving the identity and promoting the fine cultural traditions of our nation.

c/ The scientific and technological management mechanism has been step by step renewed

The system of State management over science and technology organized from the central to local levels, has stepped up the scientific and technological development, contributing to the achievement of the socio-economic development objectives of branches and localities.

In implementation of the Science and Technology Law, the scientific and technological programs, subjects and projects have been attached more closely to the socio-economic development tasks. The mechanism for selecting organizations and individuals to assume the prime responsibility for scientific and technological tasks has initially been effected according to the democratic and public principles.

Operations of scientific and technological organizations have been expanded from the research-development to production and scientific and technological services. The autonomous right of organizations and individuals in scientific and technological activities has initially been enhanced. The autonomous right of scientific and technological organizations in international cooperation has been broadened.

Capital mobilized for science and technology from such sources as contracts with production-business sector, bank credit, international aids and other sources has markedly increased thanks to the policy on diversification of capital sources for investment in science and technology. The allocation of funding sources to scientists has been further improved along the direction of reducing intermediaries.

The assignment and decentralization of State management over science and technology have been step by step improved through clear definition of the functions, tasks and responsibilities of the ministries, ministerial-level agencies and People's Committees of the provinces and centrally-run cities.

d/ The scientific and technological knowledge and application capability of the people has been increasingly heightened.

Thanks to the attention paid by Party organizations and administrations of all levels, active operation of scientific and technological organizations, agricultural-forestry-fishery promotion organizations and the wide dissemination and popularization of science and technology's effects on production and life, the knowledge and capability to absorb and apply scientific and technological knowledge of the people have been noticeably improved. Scientific and technological activities have been further socialized throughout the country.

1.2. Weaknesses and major causes

a/ Weaknesses:

Though certain achievements have been recorded, our country's science and technology still see numerous weaknesses and fall relatively far behind the world and the region, thus failing to play the role as a cornerstone and driving force for the socio-economic development.

The scientific and technological capability is still weak:

- The contingent of scientific and technological cadres still lacks really prominent ones and engineers-in-chief, especially young scientific and technological cadres with high qualifications. The structures of scientific and technological cadres by branches, lines and territories still see numerous irrationalities.

- The society's investment in science and technology is still too low, especially investment from enterprises. Facilities and equipment of research institutes and universities are insufficient, incomplete and obsolete as compared with the advanced production establishments in the same field.

- The educational and training system still fails to meet the demand of training of a high quality scientific and technological human resource, especially for advanced scientific and technological fields; fails to meet the requirements of scientific and technological development as well as the cause of national industrialization and modernization.

- The system of scientific and technological services, including scientific and technological information, consultations on technology transfer, intellectual property, standardization- metrology-quality control, is still weak in material base and capacity to provide services meeting the requirements of the regional and international integration.

- The organic linkage among the scientific and technological research, education-training and production-business does not exist; the close cooperation among research and development institutions, universities and enterprises is still absent.

- There exists a large gap of scientific and technological potentials and results of scientific and technological activities between our country and the other countries in the region and the world: The ratio of scientific and technological researchers to the population and the per capita ratio of investment in scientific research remain low; the number of research and development results up to the international standards remains small.

Panoramically, our country's scientific and technological capabilities remain weak, thus failing to answer in time numerous practical questions of the renewal, and failing to meet the requirements of the socio-economic development.

The technological level of many production branches is still low and obsolete:

Let alone the advanced technologies newly invested in some branches and fields, such as post and telecommunications, petroleum, consumer electronic appliances, electric generation and cement, the technological level of most of our country's manufacturing industries is obsolete by two or three generations as compared with regional countries. This situation has limited the competitiveness of enterprises and our economy in the context of international and regional economic integration.

The scientific and technological management mechanism is slow to be renewed and remains heavily administrative:

- The management of scientific and technological activities has still focused mainly on input elements, without due attention paid to the management of quality of output products and practical application of research results. The scientific and technological tasks have not yet been closely linked to the socio-economic development demands. The evaluation and pre-acceptance test of research results do not conform to international standards.

- The mechanism of managing scientific and technological organizations is unsuitable to the peculiar nature of creative labor and socialist-oriented market economic mechanism. The scientific and technological organizations have not yet been given full autonomy in planning, finance, human resource and international cooperation in order to promote their dynamism and creativity.

- The management of scientific and technological cadres as public servants is no longer suitable to scientific and technological activities, thus limiting the circulation and renewal of cadres. There still lacks a mechanism to guarantee that scientific and technological cadres can freely express their opinions, promote their creativity and take self-responsibility before law. No effective policies have been adopted to create motive forces for scientific and technological cadres and to attract and employ talented persons, many irrationalities have been seen in the salary regime, thus failing to encourage scientific and technological cadres to totally devote their hearts and minds to the scientific and technological cause.

- The financial management mechanism in scientific and technological activities has failed to create favorable conditions for scientists and failed to mobilize many capital sources outside the State budget; the mechanism of financial autonomy of scientific and technological organizations has not gone hand in hand with the autonomy in personnel management, thus limiting the efficiency.

- The science and technology market has been underdeveloped. The activities of selling and purchasing technologies and circulating scientific and technological research results have been restricted due to the lack of intermediary and brokerage organizations as well as necessary legal regulations thereon, and especially an effective system of intellectual property right protection.

In brief, the State management over science and technology has not yet been renewed to keep pace with the requirements of the market economy.

b/ Major causes:

The Party's and the State's lines and policies on scientific and technological development have not been adequately grasped and slow to be materialized:

- The viewpoint that science and technology constitute a cornerstone and motive force for the national development has been affirmed in the Party's resolutions but not yet, in fact, adequately grasped and implemented by localities in practical socio-economic development.

- Many undertakings and policies of the Party and the State on scientific and technological development have been slow to be institutionalized into legal documents; the organization and direction of the implementation thereof remain irresolute, thus yielding limited results.

The capacity of advisory and scientific and technological management agencies is still weak:

- The mechanism of planning, centralization and State subsidy deeply rooted in the mind and habit of not a few scientific and technological cadres as well as managers has caused an inertia to be hardly overcome in the new mechanism, failing to meet the requirements of scientific and technological management renewal in the socialist-oriented market economy as well as the context of globalization and international integration.

- The State's responsibility toward scientific and technological activities requiring the State's investment such as: key and priority scientific and technological fields; study of development strategies and policies; basic research; public-utility research, etc., has not yet been clarified; there still lack mechanisms and policies suitable to scientific and technological activities where the market mechanism should and can be applied, such as: technological research, application and development, scientific and technological services.

- The State management over the administrative sector and non-business sector in the scientific and technological system has not yet been distinctly separated, thus making the management over scientific and technological institutions heavily administrative.

- Practical experiences have been slow to be reviewed for purpose of propagating advanced models of linking scientific and technological research with education-training and production as well as business.

Investment in scientific and technological development has been still modest:

- Investment in building the scientific and technological potentials for a long period has not yet been paid due attention, and investment has not been concentrated on key and priority fields, thus leading to obsolete scientific and technological infrastructure and low investment efficiency.

- There still lacks the planning on training of a contingent of high-level scientific cadres in the priority scientific and technological fields, especially elite scientific and technological cadres and "engineers-in-chief."

The economic management mechanism has failed to create a favorable environment for scientific and technological development:

The existing economic management mechanism still maintains the State's indirect subsidy and enterprises' monopoly in many production and business fields, thus fostering the idea of relying on the State among the State enterprises, which therefore pay no attention to the application of results of scientific and technological research and technological renewal. There still lack effective mechanisms and policies to associate science and technology with production-business and encourage enterprises to apply the scientific and technological research results. The underdeveloped financial and monetary system has also failed to create conditions for enterprises to mobilize by themselves capital sources for investment in science and technology.

2. Context, opportunities and challenges for Vietnam's scientific and technological development

2.1. International context:

a/ The scientific and technological development trend:

The scientific and technological revolution in the world continues to develop more and more rapidly, and can make breakthrough achievements, which are hard to be forecasted and may exert enormous impacts on all aspects of social life of the human race.

Thanks to the great scientific and technological achievements, especially in information-communications technology, biological technology, materials technology, etc., the human society is in the process of shifting from the industrial civilization to the information era, from a natural resource-based economy to a knowledge-based economy, thus opening up new opportunities for developing countries to shorten their industrialization and modernization process.

Science and technology are becoming a direct and foremost productive force. Each nation's strength depends largely on its scientific and technological capability. Advantages in natural resources and low labor cost become increasingly less important. The role of human resource having professional qualifications and creative capability is becoming more and more decisive in the context of economic globalization.

The duration for application of research results and the life of technologies are shortened. Competitive edge is in hand of enterprises which are able to use new technologies to create new products and services, thus meeting diversified and constantly changing demands of customers. With their huge financial, scientific and technological potentials, the transnational and multinational corporations are holding and controlling the market of modern technologies.

To adapt themselves to the aforesaid circumstance, the developed countries have been adjusting their economic structures along the direction of rapidly increasing industries and services with high-technological contents and environmently-friendly technologies; stepping up the transfer of technologies consuming large volumes of energy and fuels and polluting the environment to developing countries. Many developing countries have prioritized the training of high-level scientific and technological human resources and increased investment in technological research and renewal, especially some selective high technologies; consolidating the information-communication infrastructure with a view to creating the competitive edge and narrowing the development gap.

b/ Globalization and international integration trend:

The economic globalization and international integration trend is being accelerated. This constitutes a process of cooperation for development and at the same time a struggle among countries to protect their national interests.

To survive and develop in an environment of fiercer and fiercer competitions, the requirements of raising labor productivity, constantly renovating, and raising the quality of, products, renewing technologies and reforming organizational and managerial modes have become more and more urgent. Particularly, in the context of economic globalization, the great achievements of the information-communications technology, the popularization of the Internet, as well as development of e-commerce, e-business, e-bank and e-government, etc., are creating new competitive edges for countries and each enterprise.

For the developing countries, if they fail to take initiative in preparing human resource, consolidating information-communications infrastructure, adjusting legal regulations, etc., the danger of lagging further behind and becoming disadvantaged in international exchange relations is unavoidable.

2.2. Domestic context

After more than 15 years of renewal, our country has recorded important economic achievements, which serve as a foundation for a new period of development: the economy has enjoyed high and continuous growth rates; the political and social situation has been stable; democratization and socialization have been more and more broadened; the people's life has been noticeably improved; the international cooperation relations have been bettered.

The IXth Party Congress continued affirming the path of renewal along the direction of stepping up industrialization and modernization, with a view to making ours basically an industrialized country by the year 2020; taking initiative in international economic integration and pledging to implement agreements within the framework of AFTA and the Vietnam-US Trade Agreement, and actively preparing for the accession to WTO; intensifying the reform of the State-run economic sector, developing the collective economic sector, encouraging people-run business, vigorously supporting the small- and medium-sized enterprises; stepping up the administrative reforms, etc.

The 2001-2010 socio-economic development strategy of our country already set the following overall development targets: To bring our country out of the state of underdevelopment, markedly improve the people's material and spiritual life and lay foundations for making ours basically an industrialized country along the direction of modernization by the year 2020; to ensure that the human resources, scientific and technological capacities, infrastructures, and economic, defense and security potentials be enhanced; the institutions of a socialist-oriented market economy be basically established; and the status of our country on the international arena be heightened.

In that context, science and technology are tasked to supply in time scientific grounds for important decisions and policies of the Party and the State; practically contribute to raising the efficiency and competitiveness of the economy, thus achieving the objectives of the strategy for socio-economic development till 2010.

2.3. Opportunities and challenges

a/ Opportunities:

The Party and the State have always attached importance to the cause of scientific and technological development, and the IXth Party Congress continued affirming that the scientific and technological development, together with education and training, development, constitutes a prime national policy, a cornerstone and driving force for the national industrialization and modernization.

In the context of economic globalization, with the line of multilateralization and diversification of international relations, our country has a favorable opportunity to absorb scientific and technological knowledge, resources and advanced organizational and managerial experiences of foreign countries in order to quickly enhance the national scientific and technological capability, thus satisfying the socio-economic development demand.

Making full use of achievements recorded in the modern scientific and technological revolution, our country may get direct access to modern technologies so as to shorten the industrialization and modernization process and narrow the economic development gap with the advanced countries. With a great intellectual potential, if having a correct strategy for human resource development, our country may promptly embark on some fields of the knowledge-based economy.

The national renewal process has created new premises for our country's scientific and technological development in the coming period. Our country's economy with high and continuous growth rates over the past time constitutes a favorable condition for increasing investment in science and technology, and concurrently stepping up the technological renewal and application of scientific and technological achievements to the economy, especially under the pressure of competition in the context of international and regional integration.

b/ Challenges:

In the context of dynamic and unpredictable development of science and technology as well as economy of the modern world, the capability to seize opportunities and take advantage of external resources depends largely on the country's scientific and technological level and capacity. The biggest challenge to our country's scientific and technological development at present is to quickly raise the scientific and technological capability for a shortened industrialization and modernization process when our country remains poor, investment capital is still modest, economic and scientific and technological development level is still much lower than many countries in the world and the region.

In the development trend of the knowledge-based economy, the advantages on natural resources and low labor cost have gradually given way to the advantages on human resources with high professional qualifications and creativity. Our country, if failing to restructure the existing branches and occupations and raise the professional skill of labor force, will be unable to compete with regional countries in attracting investment and advanced technologies from overseas.

In the process of international integration in economy and science and technology, our country is confronted with difficulties in transformation and building of new economic, commercial, financial, banking, intellectual property institutions in conformity with international practices. This situation, if not soon overcome, will impede the successful regional and international integration.

Facing the above-said opportunities and challenges, unless breakthrough policies on reform of economic institutions and scientific and technological management mechanism are adopted and forceful solutions are taken to enhance the national scientific and technological capability, the danger of further and further lagging behind economically, scientifically and technologically and the situation of prolonged dependence on imported technologies are unavoidable.

3. Viewpoints on and objectives of the scientific and technological development till the year 2010

3.1. The scientific and technological development viewpoints

The leading viewpoints on scientific and technological development have been clearly stated in official documents of the Party and the State, such as: the Resolution of the second plenum of the Communist Party of Vietnam Central Committee (the VIIIth Congress), the Science and Technology Law, the documents of the IXth Party Congress, and conclusions of the sixth plenum of the Party Central Committee (the IXth Congress). These viewpoints should be concretized and developed to suit the new domestic and international contexts in the period from now till 2010.

a/ Scientific and technological development constitutes a primary national policy, serves as a cornerstone and driving force for the accelerated national industrialization and modernization

To quickly promote the role of science and technology as a cornerstone and driving force for the accelerated national industrialization and modernization, the State should adopt policies to pay special attention to the scientific and technological development: regarding the investment in science and technology as development investment; prioritizing investment in construction of technical infrastructure and development of human resource; creating strong material and spiritual motivation for individuals engaged in scientific and technological activities, preferably employing and honoring talented people.

b/ Socio-economic development is based on science and technology, and scientific and technological development is oriented to socio-economic objectives and consolidation of defense and security

The important policies, decisions, programs and projects on socio-economic development must be based on scientific and technological studies; the scientific and technological tasks must be directed to efficiently achieving socio-economic objectives. All branches and levels should step up the research into and wide application of scientific and technological achievements to socio-economic, defense and security activities, from the formulation of development strategies, determination of policies, elaboration of plannings and plans to the organization of implementation thereof.

c/ To ensure the affixture between science-technology and education-training; between science and technology; between social sciences and humanities, natural sciences and technical sciences

The affixture between science-technology and education-training must first of all be effected right in universities, research and development institutions; and the same time, a mechanism of combining incentive with administrative measures must be worked out in order to create cooperation and coordination among such institutions. The affixture between social sciences and humanities, natural sciences and technical sciences and between science and technology shall be effected on the basis of inter-branch researches aimed to solve general socio-economic problems and sustainably develop the country.

d/ To boost the absorption of the world's scientific and technological achievements and at the same time, to bring into full play the internal scientific and technological capacity, and raise the efficiency of the use of the national scientific and technological potentials

In the context of profounder and wider globalization and international integration, the international cooperation in science and technology should be stepped up to tap the opportunities which may be brought about by the globalization. In the present conditions of our country, we should regard the import of technologies from developed countries as the main source to promptly meet the development demands of the economic-technical branches; and concurrently raise the internal scientific and technological capacity to efficiently absorb the world's modern scientific and technological achievements. To reform the management mechanism in order to exploit to the utmost the country's existing scientific and technological capacity, and concurrently to get access to and quickly and efficiently apply the world's scientific and technological achievements.

e/ To concentrate the State's investment on the key and priority fields, and at the same time promote the socialization of scientific and technological activities

The State concentrates its investment on key projects; synchronously combines investment in the construction of infrastructures and technical facilities and equipment with investment in the training of scientific and technological human resource, definitely completes projects to bring about as soon as possible investment efficiency. This viewpoint must be thoroughly grasped right in the process of elaborating five-year and annual scientific and technological development plans on the basis of the key scientific and technological orientations set forth in the scientific and technological development strategy. The State encourages domestic and foreign organizations and individuals of all economic sectors to participate in research, application and investment in development of science and technology.

3.2. Scientific and technological development objectives till the year 2010

The strategy for scientific and technological development till the year 2010 focuses on achieving three major groups of objectives.

a/ To ensure the supply of scientific grounds for the shortened industrialization process, sustainable development along the socialist orientation and successful integration into the world economy

Sciences and technologies, especially social sciences and humanities, shall focus on researching into and building theoretical and practical bases for the shortened industrialization process and formulating the institution of socialist-oriented market economy; to build scientific grounds for the formulation of guidelines, policies, plannings and plans on socio-economic development, solutions to sustainable development and successful integration into the regional and world economies; to answer in time other theoretical and practical questions of the daily life.

b/ To contribute a decisive part to raising quality of economic growth and competitiveness of commodity products, and ensuring national defense and security

By 2010, science and technology must contribute a decisive part to the creation of marked improvement in productivity, quality and efficiency of a number of important economic branches.

To step up the research into, and wide application of, advanced techniques to agriculture, forestry, fishery and farm produce-processing industry and foodstuffs, with a view to efficiently bringing into full play the tropical biological resources, increasing added value and competitiveness of export farm produce to be equal to those of the regional countries with developed agriculture, contributing to the rural economic restructuring, creating more jobs and markedly improving the people's life and countryside's face throughout the country by 2010.

To support small- and medium-sized enterprises, cottage industry and handicraft sector in renewing technologies, raising quality and competitiveness of products, thus satisfying the domestic consumption demand and expanding export.

To enhance the capacity to absorb, master, adapt to and innovate modern imported technologies in a number of services and infrastructures (finance, banking, post, telecommunications, communications, transport, aviation, etc.) in order to ensure the international compatibility and successful integration into the regional and world economies.

To build and focally develop a number of high-tech industries; to develop industries of information- communications technology and biological technology into economic branches with high growth rates, thus better meeting the domestic demands and increasing the export value.

c/ To build and develop the scientific and technological capacity up to the average advanced level of the region

To develop the scientific and technological potentials up to the average advanced level of the region:

- To ensure that the growth rate of the State budget investment in science and technology must be higher than the growth rate of State budget expenditure, and at the same time to step up the diversification of non-State budget sources for investment in science and technology. To strive to increase the entire society's total investment in science and technology to 1% of the GDP by 2005 and 1.5% of the GDP by 2010.

- To develop the scientific and technological human resource of high quality and with the structure of professional qualifications suitable to priority scientific and technological directions, the socio-economic development demands and rationally distributed to territorial regions. To strive to develop and raise the quality of the contingent of scientific and technological cadres to the advanced average level of the regional countries by 2010.

- To establish a number of research and development institutions and universities at the advanced average level in the region in some key technologies and some sciences in which Vietnam has advantages.

- To complete the phase-I construction of two high-tech parks in Hoa Lac and Ho Chi Minh city; to put into use and efficient exploitation of the already approved key national laboratories; to upgrade the technical infrastructure of a number of organizations providing important scientific and technological services such as scientific and technological information, standardization - metrology- quality control.

- To form a network of scientific and technological organizations fully capable for international integration, and closely linked with education-training, production-business.

To formulate an advanced and internationally compatible mechanism of scientific and technological management:

To substantially reform the scientific and technological management mechanism along the direction of being compatible with the market mechanism, particular nature of scientific and technological activities and international integration; create a motive force for promoting creativity of the scientific and technological cadres' contingent; and raise the efficiency of scientific and technological activities.

To elevate the scientific and technological capacity:

By the year 2010, our country's science and technology shall be fully capable of absorbing, mastering and efficiently using modern technologies imported from foreign countries; researching into and applying a number of modern technologies, especially information technology, biological technology, advanced material technology, automation technology and electro-mechanical technology; reaching the world level in some scientific fields in which Vietnam has advantages.

4. Key tasks of the scientific and technological development till the year 2010

4.1. Key researching tasks in social sciences and humanities

a/ Theoretically and practically researching into Vietnam's development path

To continue researching and clearly defining the path to socialism suitable to the Vietnamese conditions, people and society and adaptable to current changes in the international context.

To research into theoretical and practical bases for the shortened industrialization process; and solutions to step up the industrialization and modernization and sustainable national development.

b/ Researching into economic, political, legal, cultural, social, defense and securities matters

To research into the nature of the socialist-oriented market economy; the question of renewal and synchronous establishment of the socialist-oriented market economy institution in Vietnam. To supply scientific grounds for the socio-economic development strategy of the whole country as well as key branches and localities. To propose solutions to raise the competitiveness of the economy and capability to join international financial-monetary institutions.

To research into the reform of the political system, suggest solutions to realize and promote democracy, consolidate the role of the ruling Party, reform the State's administrative apparatus. To build the socialist law-governed state. To study ownership relations and private economy practiced by Party members. To study the change of social structure and management of social development in Vietnam under the conditions of the socialist-oriented market economy.

To build and perfect the legal system, create a favorable legal corridor for the formulation and synchronous development of the socialist-oriented market economy institution and the international economic integration. To study our country's defense and security issues in 10 years to come in service of the cause of construction and defense of the fatherland.

To comprehensively and systematically research into the historical development and physiognomy of the Vietnamese culture, new cultural values of Vietnam, and build an advanced Vietnamese culture deeply imbued with the national identity.

c/ Researching into the development of Vietnamese

To conduct basic research into human being and human resource in its capacity as a social entity, with a high educational level, profoundly endowed with the national humanism and fine cultural values, able to absorb the quintessence of mankind's culture and civilization and satisfy higher and higher requirements of the national industrialization and modernization.

d/ Studying and forecasting the development trends of the world

To research into nature, characteristics and contents of the contemporary scientific and technological revolution and the development of the knowledge-based economy in the XXIst century, attaching special importance to the social aspect and impact of this revolution on the development process in Vietnam.

To research into and forecast the major development trends of the world and the region in the first decades of the XXIst century as well as multi-faceted impacts of the globalization. To forecast evolutions and major development trends in the region and the world, making the fullest use of opportunities, and advantages, preclude and minimize disadvantages and risks, and concentrate all resources for the cause of construction and defense of the fatherland.

To continue conducting research into the contemporary capitalism in the context of globalization, the political, economic, social, cultural and military impacts of the contemporary capitalism, new entities in international relations which directly affect Vietnam's development strategy, in order to clearly identify Vietnam's position, role, steps and policy of integration into global and regional institutions.

4.2. Key researching tasks in natural sciences

The State pays attention to the development of basic research in natural sciences, especially application-oriented basic research. In the period from now to 2010, basic researches in natural sciences must be conducted, focusing on the following principal directions:

a/ Application-oriented basic research aims to support the process of selecting, absorbing, adapting and innovating advanced technologies imported from foreign countries into Vietnam and proceeds to create peculiar technologies of Vietnam, especially in fields of information technology, biological technology, advanced material technology, automation technology, electro-mechanical technology.

b/ To research into and clarify the use value of our country's natural resources, serving as basis for elaboration of plans on, and selection of technologies for efficient exploitation thereof. To attach importance to research into potentials in bio-diversity and precious natural resources which are in danger of exhaustion due to over-exploitation and environmental degradation.

c/ To research into the nature and laws of the nature as well as their impacts on our country's socio-economic life, paying attention to climatic and natural elements in ecological regions in service of forecast and prevention of natural calamities (storm, flood, forest fire, land slide, land crack, riverbank and coastal erosion, estuary and lagoon soil alluvium, drought, etc.).

d/ To research into basic issues about the East Sea in service of the forecast of marine resources, the construction of marine projects and general exploitation of marine resources, sustainable development of marine economy, national defense and security.

e/ To develop a number of theoretical research fields in which Vietnam has advantages, such as mathematics, theoretical physics, etc.

4.3. Key technological directions in service of the socio-economic development

In the period from now till the year 2010, our country should concentrate on selectively developing a number of key technologies, including: advanced technologies which greatly impact the modernization of techno-economic branches and the assurance of defense and security; create conditions for the formation and development of a number of new branches and trades, thus raising the competitiveness of the economy; develop technologies which can bring into full play our country's advantages in tropical agricultural resources and enormous labor force in the countryside, turning out export products and creating income-generating jobs for all population strata.

a/ Information-communications technology

To concentrate on researching into and developing:

- New technologies in communications: Bandwidth services, switching systems, high-capacity optical transmission systems, access technologies, mobile communication systems, new-generation Internet, satellite communication technology, network management technology, digital radio and television broadcasting technology.

- Software technology: Database, content technology, multi-media technology, geographical and graphical information system; development of software in network environment; solutions for "management of resources of organizations"; open-source software; software production process; procedures for evaluating, testing and raising quality of software; designing and building of applied information technology systems.

- To research into artificial intelligence, attaching importance to particular issues of Vietnam: Identification of Vietnamese script, imaging and identification of Vietnamese language; knowledge-based technology; expert system; automatic translation.

- To conduct application-oriented basic research in a number of selective fields: mathematics of informatics; some selective inter-branch directions such as nano-technology and new-generation electronic components, which serve as basis for development of application of nano-informatics.

To step up the application of information - communications technology in all economic, social, life, defense and security domains:

- In the State management from the central to grassroots levels, to attach importance to building information systems and databases in service of the State management activities, establishment of an e-Government.

- In techno-economic domains which require early compatibility with the international and regional levels, such as: post, banking, finance, tourism, commerce, particularly e-commerce, energy, communication and transport, defense, security, etc., to execute projects on computerization and provision of information-communications technology services in enterprises. To apply information-communications technology in the rural areas.

- To popularize knowledge about and apply information-communications technology in the education and training from senior secondary schools to universities; to apply information-communications technology to scientific research, activities of investigating, exploring, surveying natural resources and monitoring environmental changes, domains of healthcare, culture and tourism.

To develop information-communications infrastructure and to build information-communications technology industry:

To develop infrastructure for information-communications technology industry which are modern and internationally compatible. To build content industry, information-communications technology service industry and software industry in service of the domestic market and export; and at the same time to make full use of possibilities of technology transfer, joint venture or association for selective development of establishments assembling and/or manufacturing modern informatic components and equipment to regain the domestic hardware market share and for export. To turn the information-communications technology industry into an industry with high growth rate and big export turnover.

b/ Biological technology

To build and develop base technologies of biological technology up to the advanced level in the region, including:

- Genetic technology (ADN recombination).

- Industry-oriented microbiological technology.

- Enzyme-protein technology in service of development of food and pharmaceutical industries.

- Cell technology (plants and animals) in service of selection and creation of new strains in agriculture, forestry and aquaculture and development of cell therapy in health care.

To develop biological technology in the national economy branches:

- Biological technology in agriculture (agriculture-forestry-fishery): To develop enterprises engaged in breeding disease-free plants and animals, production of high-quality seeds; to apply biological technology techniques to the creation of high-quality plant varieties and animal breeds which can compete in the domestic and overseas markets, focusing on food crops, vegetables and fruit trees, forestry plants, domestic animals and aquatic animals; to develop the industrial production of bio-products for protection of plants and domestic animals on medium and small scale.

- Biological technology in processing: To serve the production of goods for domestic consumption and export.

- Biological technology in medicine and pharmacy: To ensure the sufficient supply of products for prophylactic medicine (vaccines, antibiotics, diagnostic bio-products), control of food safety and hygiene.

- Biological technology in environmental protection: To control, treat and assess the environment, concentrating on industrial zones, craft villages and agricultural product-processing farms; to treat solid waste matters, waste water, waste gas and overcome oil spills; and to protect the bio-diversity.

To build and develop Vietnam's biological industry:

- To encourage all economic sectors to build and develop biological technology enterprises producing products in service of economic branches, for consumption and export.

- The State invests in building of a number of key biological industries such as: the industry for producing plant and animal varieties; the industry producing pharmaceuticals (vaccines, antibiotics, diagnostic bio-products); the industry producing bio-products for plant and animal protection; the food-processing industry; the industry for processing products from petroleum.

c/ Advanced materials technology

To concentrate on researching, developing and efficiently applying the following technological directions:

- Metal material technology: From the domestic natural resources, to research and select appropriate metallurgical technologies such as: electric furnace, blast furnace-closed convey furnace, non-coke technology for production of high-quality alloy steel, alloys with combined properties for use in mechanical engineering, construction, communication and transport, chemicals, oil and gas industries, and defense; to research and select technology producing aluminum alloys for use in machinery manufacture and defense; technology for producing metal-based composites for use in electric, electronic and medical-biological techniques.

- Polymer and composite materials technology: To research and apply technologies for producing elastic thermal and solid thermal composite materials enforced with glass fiber, basalt fiber and carbon fiber in service of communications and transport, agriculture, aquaculture and defense; composite polymers for use in electric and electronic techniques under harsh environmental conditions; biologically decayed polymers and polymers for treating environmental pollution.

- Electronic and photonic materials technology: To research and apply technologies for producing photo-electronic and photonic materials and components in service of telecommunications and automation; to produce high-grade magnetic materials in conglomerate form, amorphous membranes and nanotechnology used in mining industry, electric, electronic and automation industries; to produce sensitive materials and components for use in measurement and automation.

- Medical-biological materials technology: To research into technologies for producing a number of materials for medical use to substitute some parts of human body: biological polymers, carbon composites, physiology-regulating materials, growth-regulating materials, porous carbon materials, bioxitan materials.

- Nano technology: To research and apply technology for producing polymer-based and metal-based nano composites for use in the techno-economic branches; nano-structured catalysts for use in the field of oil and gas and environmental treatment. To conduct application-oriented basic research in some nanotechnology directions of high applicability in Vietnam.

d/ Automation and electro-mechanical technologies

To research into and apply automation and electro-mechanical technologies in order to raise quality and efficiency of the production, and contribute to raising competitiveness of enterprises and the economy:

- To apply computer-aided designing and manufacturing (CAD/CAM) technologies to a number of production branches in service of export such as: textile, garment, leather footwear and mechanical engineering (in the key fields of complete equipment, prime movers, machine tools, mechanical engineering in service of agriculture - forestry - fishery and processing industry; construction mechanical engineering; ship building; electric-electronic equipment; automobile - transport mechanical engineering).

- To design and build software, assemble and maintain operation of data control, supervision, collection and processing systems (SCADA).

- To apply the comprehensively integrated automation technology to raise the efficiency of the whole production process of enterprises.

- To apply and popularize the computer numerical control (CNC) technology to machinery systems in the field of processing and manufacturing machine tools in service of domestic production demands and export.

- To widely apply the measurement and information processing automation technology in service of production branches, weather and natural disaster forecast, environmental protection.

- To research into, apply and develop robotic techniques (especially smart robots and parallel robots), which are applied first of all to production processes unsafe for people, in hazardous environment, in some hi-tech industrial production chains and in service of defense and security.

- To research into and manufacture a number of electro-mechanical products, especially in some key mechanical fields (machine tools, prime movers, eletric-electronic equipment, automobile mechanical engineering and controllable measuring devices).

- To apply and develop technologies for designing and manufacturing electro-mechanical control systems (including both hardware and software), especially immersion control systems; to give priority to development of applied software and designing solutions. To develop simulating techniques, especially virtual modeling technology for optimizing hi-tech products, for application to robots, ship building, precision machines, wind-powered equipment, etc.

- To conduct initial research into some new and prospective electro-mechanical directions, such as micro-electro-mechanical system (MEMS) and nano-electro-mechanical system (NEMS).

e/ Atomic energy and new types of energy

To develop nuclear power: To research and select technologies for projects on nuclear electric power plants, absorb and master imported technologies for operation of such plants with safety and high economic efficiency.

To research and widely apply nuclear, radiation and radioactive isotope techniques to national economic branches, healthcare, geology, hydrology and environment; to ensure the safety of nuclear radiation in the research, development and use of atomic energy; to manage radioactive waste.

To step up research, development and application of new types of energy in service of deep-lying and remote regions and islands, such as: solar energy, wind energy, biological energy, etc.

e/ Aerospace technology

To research and develop aerospace technology: To research, absorb and master technology and launch small satellites for global observation, ground receiving stations in service of demands for scientific research, socio-economic development, defense and security. To build up Vietnam's aerospace science and technology capable of designing and manufacturing small satellites, designing and manufacturing ground receiving stations by 2010; to develop some aerospace equipment of commercial value; to master missile technologies and techniques.

To apply aerospace technology: To research and receive the transfer of telereconnaissance technology and global positioning technology in service of scientific research, basic survey of natural conditions and natural resources; environmental supervision; land and territorial region planning; forecast and control of natural disasters; aquaculture and catching of marine products; positioning of communications and transport means; defense and security, etc.

f/ Mechanical engineering and machine manufacturing technologies

To research and apply advanced technologies in the mechanical engineering - machine manufacturing industry; to develop the mechanical engineering - machine manufacturing industry capable of supplying equipment and machines to satisfy domestic demands and proceed to export:

- Cast-making technology: To apply self-hardening raw mold casting technology with the standardization of molding materials and precise casting technology with the reinforcement of mechanization and automation processes, investment in melting and working equipment and equipment for quick analysis and examination; cast mold forging, cast-making rolling, squeezing, post-agglomeration compressing and casting technologies; automatic or semi-automatic electric arc welding technology and a number of modern welding technologies such as plasma welding, electronic beam welding, etc.

- Mechanical processing technology: Together with the upgrading and modernization of the existing equipment and machines, it is necessary to widely apply CAD/CAM/CNC technologies at the processing centers in order to raise quality of products and changeability of product models; to combine electronic mechanical engineering in service of designing automation and processes of control, examination and measurement.

- Surface-treating technology: To invest in processes of heat treatment, vanishing, plating, coating injection, continuous hardening filtration to increase surface durability up to the advanced level.

- Technology for manufacturing special-type equipment and spare parts: To manufacture large steel structures and work structures.

- Machine manufacturing technology in service of agricultural mechanization, food and foodstuffs preservation and processing.

g/ Technologies for preserving and processing farm produce and foodstuffs

To concentrate on researching and applying technologies to raise the added value and competitiveness of farm produce and foodstuffs:

- Preliminary processing technology: To step up the research into and application of technologies in preliminary processing, sorting, cleaning, packing with appropriate packing materials and smart membranes in order to turn out agricultural products of high, stable and homogenous quality in service of export and domestic demands. To concentrate on supplying small- and medium-sized technologies to meet the on-spot preliminary processing demands of households and household groups, in order to supply good-quality raw materials for concentrated processing establishments.

- Preserving technology: To attach importance to popularizing the technology for drying paddy and cash crops after harvest. To absorb and popularize cold preservation technology and food safety technology to preserve vegetables, flower, fresh fruits, aquatic products and husbandry products in service of domestic consumption and export. To research and use biological preservatives and preservatives of natural origin to gradually substitute for chemical preservatives of high toxicity.

- Processing technology: To utilize all possibilities to get access to appropriate advanced processing technologies in order to diversify products, raise quality and competitiveness thereof on the domestic and overseas markets. Particularly, importance must be attached to upgrading and modernization of processing technologies for a number of our country's products with competitive edge and export prospects, such as: rice, aquatic products, coffee, tea, cashew nut, rubber, meat and dairy products, vegetables, fruits, fruit juices, vegetable oil, etc.

- To modernize the system for controlling quality of farm produce and foodstuffs processed with technologies compatible with the international and regional standards, in order to satisfy the requirements on quality of export goods and protect the domestic consumers' interests.

The above-said technologies may be upgraded by the following modes:

- Regarding technological chains which are relatively complicated or beyond the domestic manufacturing capability, the selection, reception and mastering of technologies imported from foreign countries must be well performed.

- Regarding technologies, which are not too complicated and for which there exist great domestic demands, the domestic resources must be rallied to concentrate on completing all processes from research to development to create at reasonable costs technologies which are stable and able to be proliferated and multiplied in reality.

5. Solutions to scientific and technological development

To contribute to achieving the objectives of scientific and technological development till the year 2010, we should concentrate on synchronously applying the following major solutions: 1) Reform of the scientific and technological management mechanism; 2) Development of scientific and technological potentials; 3) Building and development of the science and technology market; 4) Promotion of international integration in science and technology. Of which, the reform of the scientific and technological management mechanism to tap all scientific and technological creativity potentials and efficiently use the existing scientific and technological capability constitutes a solution of breakthrough significance.

5.1. Reform of the scientific and technological management mechanism

To reform the existing scientific and technological management mechanism along the direction of formulating a new management mechanism compatible with the socialist-oriented market mechanism, particular nature of scientific and technological activities and requirements of active international integration; to separate the management in the administrative sector and the non-business sector in the science and technology system in order to adopt management mechanism appropriate to each sector; to enhance the autonomy and sense of self-responsibility of organizations and individuals engaged in scientific and technological activities.

a/ The State management over science and technology

To continue improving the system of State management over science and technology along the direction of correctly performing the State management function, avoiding overlapping with non-business activities and being compatible with the administrative reform process; to enhance the coordination direction and regulation by the Government on the basis of decentralization and clear definition of responsibilities for the State management over science and technology of the ministries, provinces and centrally-run cities.

The State concentrates on formulation of key science and technology orientations, developing scientific and technological human resource and building the national scientific and technological infrastructure; and at the same time formulates mechanisms and policies to encourage domestic and foreign organizations and individuals of all economic sectors to invest in development and participate in scientific and technological activities.

To raise operation quality and efficiency of the National Council for Scientific and Technological Policies in the preparation of the Government's decisions on strategy, plans, mechanisms, policies for national scientific and technological development.

To enhance the role of the socio-professional organizations and socio-political organizations, especially Vietnam Union of Scientific and Technical Associations, in giving consultations and critics on and conducting social assessment of policies, programs and projects on socio-economic as well as scientific and technological development.

To increase the effectiveness of the work of State inspection of science and technology.

b/ Organization and performance of scientific and technological tasks

The organization and performance of scientific and technological tasks must aim to achieve to the utmost the objectives of economic, social, scientific and technological development of the country, branches, localities and grassroots units.

To effect the responsibility assignment and decentralization in the organization and performance of scientific and technological tasks:

- The Government decides on key scientific and technological development orientations which shall service as basis for the determination of State-level scientific and technological tasks of national importance, inter-branch and long-term nature and in service of the socio-economic development, defense and security and enhancement of the national scientific and technological capability. The Prime Minister shall personally direct the elaboration and performance of State-level scientific and technological tasks and integration thereof with socio-economic programs. The Ministry of Science and Technology helps the Government determine and organize the performance of these scientific and technological tasks.

- The ministries and branches decide on the scientific and technological tasks in direct service of their respective development objectives which do not coincide with the State-level scientific and technological tasks. The scientific and technological management agencies under the ministries and branches help the ministers and the heads of the ministerial-level agencies determine and organize the performance of scientific and technological tasks of such ministries and branches.

- The localities decide on scientific and technological tasks largely of application nature and in direct service of their respective development objectives. The local scientific and technological management agencies help the People's Committee presidents determine and organize the performance of local scientific and technological tasks.

- The scientific and technological organizations, enterprises and social organizations of all economic sectors can determine their respective scientific and technological tasks by themselves, depending on practical demands and the national socio-economic and scientific and technological development objectives and plans.

To reform the mechanism of organization and performance of scientific and technological tasks:

- The mechanism of organization and performance of scientific and technological tasks must be open for participation by scientists, entrepreneurs and social organizations, ensuring democracy, competition, objectivity, publicity and equality in the selection of organizations and individuals to perform the scientific and technological tasks; to substantially renew the work of scientific and technological assessment based on quality and efficiency criteria, ensuring its compatibility with international standards, aiming to quickly apply research results to production and life.

- For researches into technological application and development, the mechanism of alignment among State management agencies, scientific and technological organizations and enterprises in the whole process from the determination of scientific and technological tasks, organization of performance, to the appraisal and practical application of research results.

- To combine the mode of selection in a competitive, public and democratic manner with the mode of direct assignment of tasks based on the clear and rational selection criteria in order to ensure the selection of right organizations and individuals fully capable of performing the scientific and technological tasks at all levels, branches and localities.

- To enhance the management of results of scientific and technological activities in order to raise the science quality and quick application of research results in reality.

c/ The mechanism of management of scientific and technological organizations

To reform the mechanism of management of scientific and technological organizations on the basis of separating the management in the administrative sector and the non-business sector in the scientific and technological system.

To promulgate the mechanism of autonomy and self-responsibility applicable to the State-run scientific and technological organizations:

- The State vests the autonomy and self-responsibility rights to scientific and technological organizations suitable to particularity of each type of scientific and technological activities, aiming to promote to the utmost the autonomy and creativity of such organizations.

- The autonomy and self-responsibility rights of the State-run scientific and technological organizations must be effected in the elaboration and implementation of plans on scientific and technological activities, financial, property and personnel management, and international cooperation.

Basing itself on the particularity of each type of scientific and technological activities, the State adopts appropriate mechanisms and policies:

- Scientific and technological organizations shall principally conduct basic researches, study grounds in service of the formulation of policies and strategies, research into key scientific and technological fields and public-utility fields, and be assigned scientific and technological tasks according to their operation functions, and be allocated operation funding by the State.

- Scientific and technological organizations which research, apply and develop technologies turning out products to meet the market demands shall shift to one of the following organizational forms: Scientific and technological organizations operating according to the self-financing mechanism, enterprises, science and technology enterprises. The State shall only allocate funding to these organizations according to the mechanism of placing goods orders being scientific and technological tasks;

To prescribe the regime of periodical self-assessment and external assessment of the State-run scientific and technological organizations according to criteria compatible with international standards, in order to raise the investment efficiency. Research and technology transfer results (number of articles published in international scientific journals, number of invention and utility solution patents) and application thereof have gradually become the most important criteria for the scientific and technological organizations and scientists to receive the State’s financial aids.

To promulgate policies to encourage and support scientific and technological organizations to transform themselves into the following forms:

- Those shifting to operate under the self-financing mechanism shall enjoy the State's supports in salary funds and apparatus operations for five years after transformation decisions are issued;

- Those transformed into enterprises operating under the Enterprise Law shall be assigned by the State the right to use all their property and enjoy the preferential policies like newly established enterprises;

- Those transformed into scientific and technological enterprises shall, besides regimes and policies applicable to the above-said enterprises, enjoy the enterprise income tax preferences provided for by law.

The State shall adopt the policy on supports for the transfer of scientific and technological cadres, public servants and employees who are waiting for employment, job transfer, retraining, removal from office, etc.

To build a mechanism for linking science and technology with education and training:

- To enhance the researching function of universities: To prescribe researching tasks of university lecturers; to increase investment in researching activities in universities.

- To link the research - development organizations with the universities: To prescribe the lecturing tasks of researchers of research - development organizations; to elaborate regulations on joint use of laboratories and equipment in service of research and lecturing; to establish various kinds of organizations linking training with research such as academies and other forms of cooperation.

- To consider the transfer of a number of basic research institutes under the two national scientific centers to universities.

d/ The financial management mechanism applicable to science and technology

- To apply the mechanism of financial autonomy to State-run scientific and technological organizations suitable to each type of scientific and technological activities, such as: basic research, research into grounds in service of the formulation of policies and strategies, research into key scientific and technological fields and public-utility fields, technological research, application and development.

- To improve the financial regime in the performance of scientific and technological tasks: To research and apply the mechanism of allocation of package funds for execution of scientific and technological subjects and projects; to improve the procedures for financial liquidation and settlement along the direction of simplification with close management of output products.

- To formulate financial mechanisms and policies applicable to scientific and technological activities of enterprises, especially scientific and technological enterprises.

5.2. Development of scientific and technological capability

a/ Development of scientific and technological human resource

To raise the awareness of the role and position of the contingent of scientific and technological cadres:

- To make all levels and branches thoroughly grasp the viewpoint that the contingent of scientific and technological intellectuals constitutes a national treasure and a resource decisively contributing to the success of national industrialization and modernization. This contingent consists of scientific and technological cadres in the research - development organizations and universities, cadres participating in scientific and technological activities in enterprises, State management agencies, the political, social or professional organizations.

- The branches and levels should make investment in and create favorable conditions for this contingent to promote to the utmost its creativity in national industrialization and modernization.

To reform the mechanism of management of scientific and technological human resource in order to tap potentials, promote the sense of initiative and creativity of the contingent of scientific and technological cadres:

- To gradually shift scientific and technological cadres from the State payroll regime to the labor contract regime, create conditions for the transfer of cadres, and form the labor market in scientific and technological activities.

- To effect the autonomy and self-responsibility rights to personnel management by scientific and technological organizations in deciding on recruitment, training, arrangement, employment, appointment, dismissal, demotion, job resignation, salary grading, commendation and other preferential regimes for officials and employees.

To formulate policies to create strong material and spiritual motive forces for individuals engaged in scientific and technological activities, well treat and honor scientific and technological talents:

- To promote patriotism, socialist ideal, science ambitions and passions, and spirit of research cooperation among the contingent of scientific and technological cadres.

- To effect the mechanism for healthy competition, gradually eliminate the egalitarian distribution regime, and implement the regime of preferential treatment commensurate to devotions of scientists and technologists; To set no limit to incomes of scientific and technological cadres, and give personal income tax exemption or reduction for scientific and technological activities. To effectively protect the intellectual property rights in order to encourage the creativity and wide application of research results.

- To promulgate the policy on commendation and rewards for individuals recording scientific and technological achievements of high scientific and practical value; the policy to encourage scientific and technological cadres to work in geographical areas with difficult or exceptionally difficult socio-economic conditions; the policy to employ scientific and technological cadres who reach the retirement age but have professional qualifications and good health and are wholeheartedly devoted to their jobs.

To reform the policy on training of scientific and technological cadres:

- To step up the selection and sending of pupils, students and scientific and technological cadres to countries with advanced scientific and technological levels for comprehensive training in some national key scientific and technological fields for the immediate future. To promote close coordination between training establishments and agencies employing scientific and technological cadres.

- To attach importance to the training and fostering of talents, scholars, engineers-in-chief, head engineers, skilled technicians; to build up strong scientific and technical collectives capable of solving important scientific and technological problems arising from production, life, defense and security.

- To adjust the training structure along the direction of intensifying the training of technical workers (especially highly skilled workers) for branches calling for foreign investment and key socio-economic branches.

- To mobilize to the utmost and support all economic sectors, especially the private economic sector and the foreign-invested sector, to directly participate in the training of scientific and technological human resource.

- To give priority to the use of financial sources from the international cooperation or aids, including official development assistance, for the training of scientific and technological human resource, particularly in the scientific and technological fields.

- To encourage the opening of international or regional universities or technological research institutes in Vietnam. To attract foreign prestigious research institutes and universities to cooperate with Vietnamese ones or open their branches or organize scientific and technological human resource training programs in Vietnam.

b/ Development of the national system of scientific and technological information

The State intensifies investment in, upgrading and modernization of, the existing scientific and technological information centers, builds and develops the national scientific and technological information system connected with the international one; to efficiently exploit the scientific and technological information sources at home and abroad, and overcome our country's current situation of information backwardness.

To build and develop the national scientific and technological databanks, first of all for information related to State-funded research results, information on intellectual property and basic survey figures on natural resources and scientific and technological potentials.

To step up the dissemination of scientific and technological information to users, attaching importance to information in service of enterprises, development of rural, deep-lying and remote areas.

c/ Concentration on building a number of scientific and technological organizations and infrastructures up to the advanced average level in the region for some key scientific and technological directions

To concentrate on investment in building a number of scientific and technological organizations in some key scientific and technological directions, ensuring that these agencies have sufficient research and experimental facilities and equipment, information and documents, and contingents of scientific and technological cadres up to the advanced level in the region.

To build a number of national key laboratories up to the advanced level of the region in service of the national key scientific and technological directions.

To build the system of standardization, metrology and quality control up to the level compatible with the regional and international levels.

To step up the development of organizations researching and applying high technologies, attaching importance to the acceleration of tempo of construction and putting into use of two hi-tech parks in Hoa Lac and Ho Chi Minh city.

d/ Mobilization and raising of use efficiency of financial sources for science and technology

To formulate mechanisms and policies to diversify the investment capital sources for scientific and technological activities: To encourage enterprises to invest in technological renewal; to attract foreign investment capital sources, use official development assistance capital for investment in scientific and technological development; to encourage the setting up of the scientific and technological development fund and the venture investment fund with non-State budget capital; to ensure that the annual growth rate of State budget expenditures for science and technology is higher than the growth rate of State budget expenditures.

To concentrate investment in the key scientific and technological directions; set aside adequate investment capital for the application-oriented basic research in sciences; and make investment in the construction of material-technical foundations in harmony with investment in the training of scientific and technological cadres.

To build the system of criteria and methods for evaluating efficiency of investment in science and technology, particularly the socio-economic efficiency.

5.3. Building and development of the science and technology market

a/ Stepping up the reform of mechanisms and socio-economic policies to create demands for application of scientific and technological achievements to production and life

To create an environment for fair competition, step up the reform of State enterprises, and step by step limit the monopoly of the State corporations; to promulgate policies on competition and control of monopoly, dissolution and bankruptcy of enterprises, restriction of debt freezing and rescheduling. To take initiative in international economic integration, fulfill the international commitments and accelerate the accession to the World Trade Organization, thus imposing a pressure on enterprises to pay attention to their production and business efficiency, and compute efficiency to be achieved upon the selection of technologies and renewal of products.

To intensify the State's supports for the raising of enterprises' capacity to renew technologies, paying special attention to medium- and small-sized enterprises.

To develop the capital market, particularly the securities market, improve and expand the financial market's instruments, such as financial hire-purchase, financial companies, etc., so that enterprises can get access to medium- and long-term investment capital sources suitable to the cycles of product renewal or technological renewal.

To apply the mechanism whereby the State purchases scientific and technological products turned out from researches not funded with the State budget to serve the socio-economic development demands.

b/ Creating a legal environment for the operation of the science and technology market

To perfect legal grounds for operation of the science and technology market. To step up the propagation, education, dissemination and elevation of implementation effect of the legislation on intellectual property and technology transfer.

To institutionalize transactions in the science and technology market in order to promote the commercialization of scientific and technological products, capital contribution with copyright over research products or other intellectual property forms; purchase and sale of scientific and technological products; e-commerce transactions, etc.

To promulgate regulations on standards, quality and safety of scientific and technological products before being applied in reality. To form organizations managing the science and technology market.

c/ Development of intermediary or brokerage organizations in the science and technology market

To encourage and support the establishment and development of organizations providing consultancy, brokerage or services of technology transfer, and local and national equipment and technology markets.

5.4. Acceleration of the international integration in science and technology

a/ To diversify partners and forms of international cooperation in science and technology, select strategic partners and combine the international cooperation in science and technology with the international cooperation in economy. To institutionalize the incorporation of scientific and technological contents in the projects on international cooperation in economy. To get the full access to channels for transfer of modern technologies from foreign countries, especially the foreign direct investment channel and cooperation in scientific and technological research.

b/ To promulgate the policies on attracting overseas Vietnamese and foreign experts with high qualifications to participate in research, lecturing, consultancy and assuming the scientific and technological research management posts in Vietnam.

c/ To enhance to the utmost the autonomy and self-responsibility rights of scientific and technological organizations in international cooperation: To send cadres to foreign countries for training; to invite foreign experts to cooperate with ours in research and lecturing; to penetrate into the international market and expand the export of commodity products turned out from the application of research results to production.

d/ To elaborate the strategy for international integration in science and technology. That strategy must set forth orientations, objectives and solutions to quickly raise the international integration capability and narrow the scientific and technological gap between our country and the region as well as the world; and effectively serve the process of international economic integration.

6. Organization of implementation of the Strategy

In the period from now to 2005:

In this period, the following pivotal tasks must be expeditiously performed:

6.1. Stepping up the reform of management and operation of scientific and technological organizations

a/ To improve the functions, tasks and organization of the apparatus of State management over science and technology along the direction of responsibility assignment and decentralization in compatibility with the administrative reform process.

b/ To promulgate the regulation on activities and management of social sciences and humanities in order to broaden democracy and bring into play the creative potentials in scientific research and theoretical studies.

c/ To formulate the autonomy and self-responsibility mechanism applicable to State-run scientific and technological organizations and policies on support for scientific and technological organizations in their transformation.

d/ To formulate the mechanism of linkage between science-technology and education-training;

e/ To reform the financial mechanisms and policies for scientific and technological activities, including:

- Improving the financial autonomy mechanism applicable to scientific and technological organizations.

- Renewing the modes and regimes of financial expenditures for scientific and technological programs, subjects and projects funded with the State budget along the direction of application of the mechanism of package expenditures on the basis of evaluation of quality of output products.

- Improving the tax and credit policies to encourage scientific and technological creativity and technological renewal activities of enterprises, especially the scientific and technological enterprises.

- Formulating mechanisms and policies to diversify capital sources for investment in scientific and technological activities (capital invested by enterprises in technological renewal; foreign direct investment capital, official development assistance (ODA) capital for scientific and technological development; scientific and technological development funds).

6.2. Building and developing the science and technology market

a/ To promulgate the amended Decree on technology transfer and the amended Decree detailing the industrial property.

b/ To draw up and materialize the program on support for enterprises to modernize and renew technologies, raise the competitiveness and economic integration capability in the provinces and centrally-run cities on the basis of aligning scientific and technological management agencies, scientific and technological organizations and enterprises.

c/ To develop the local and national equipment and technology markets. To form the organizations managing the technology market.

d/ To set up the venture investment fund to support organizations and individuals to nurse the creation of technologies and enterprises.

6.3. Developing the scientific and technological potentiality

a/ To formulate the strategy and policies on development of Vietnam's high technologies (information technology, biological technology, materials technology, automation, electro-mechanics, atomic energy and aerospace technology).

b/ To elaborate the planning on national, branch and local networks of scientific and technological organizations.

c/ To work out scheme on renovation of the National Center for Natural Sciences and Technologies and the National Center for Social Sciences and Humanities, concentrate on the development of a number of key scientific and technological research institutes attaining the advanced intermediate level of the region by the year 2010 to act as the core of the national scientific and technological system.

d/ To elaborate the planning on development of hi-tech parks, promulgate policies on promotion of investment in hi-tech parks. To concentrate on investment and acceleration of tempo of construction of general infrastructures and investment promotion in two hi-tech parks (in Hoa Lac and Ho Chi Minh city).

e/ To concentrate investment in building of national key laboratories.

f/ To promulgate the policies on training, arrangement, employment, commendation and preferential treatment of scientific and technological cadres. To organize the implementation of the program on training of scientific cadres with high qualifications in the national key scientific and technological fields.

g/ To build the system of scientific and technological statistics.

6.4. Boosting the international scientific and technological integration

To formulate and implement the strategy for international scientific and technological integration.

In the 2006-2010 period:

To continue improving and effecting the reform of scientific and technological management mechanism; step up the development of the science and technology market and commercialization of scientific and technological products. To implement the planning on the network of scientific and technological organizations; step up the implementation of the Strategy and policy on development of high technologies; build 3 to 5 universities and 3 to 5 research institutes up to the advanced average level of the region; complete and put to efficient use the national key laboratories; complete the first phase of construction of two high-tech parks (in Hoa Lac and Ho Chi Minh city); build and develop in a selective manner a number of hi-tech industries in order to accelerate the national industrialization along the modernity direction for the period after the year 2010. To step up the implementation of the strategy for international integration in science and technology.-